Telemarketing

DEFINITION of 'Telemarketing'

The act of marketing goods or services to potential customers over the telephone. Telemarketing may either by carried out by telemarketers, or increasingly, by automated telephone calls or "robocalls." The intrusive nature of telemarketing, as well as reports of scams and fraud perpetrated over the telephone, has spurred a growing backlash against this direct marketing practice.


Also known as telesales or inside sales.

BREAKING DOWN 'Telemarketing'

The United States and Canada have national "Do Not Call"(DNC) registries that give their residents a choice about whether to receive telemarketing calls at home. In the United States, the registry is managed by the Federal Trade Commission (FTC) and enforced by the FTC, Federal Communications Commission and state law enforcement officials.


Consumers who are registered in the DNC database can file a complaint if they receive a call from a telemarketer, which could lead to a stiff fine and sanctions for the telemarketing firm. However, calls from charities, political organizations and telephone surveyors are permitted and would be received by a consumer, despite listing his or her phone number on the DNC registry. Also permitted are calls from businesses with whom the consumer has an existing relationship, as well as those businesses where consent to call has been provided in writing.


In recent years, numerous North American firms have outsourced their telemarketing functions to lower cost jurisdictions such as India, Mexico and the Philippines.

RELATED TERMS
  1. Direct Marketing

    A form of advertising in which physical marketing materials are ...
  2. Cold Calling

    The solicitation of potential customers who were not anticipating ...
  3. Boiler Room

    A place where high-pressure salespeople use banks of telephones ...
  4. Federal Trade Commission - FTC

    An independent federal agency whose main goals are to protect ...
  5. Dialing and Smiling

    A telemarketing technique in which unsolicited, or "cold" calls, ...
  6. Viral Marketing

    Internet advertising or marketing that spreads exponentially ...
Related Articles
  1. Professionals

    How To Target Ideal Customers

    Expand your definition of a lucrative client and uncover a new realm of possibilities.
  2. Professionals

    Tips For Fitting In At Your Brokerage Firm

    Part of starting a successful career as a broker is finding the right place to work.
  3. Brokers

    Alternatives To The Cold Call

    Want to build your business as a financial professional? We provide some choice advice.
  4. Retirement

    Cold Call Without Getting The Cold Shoulder

    Learn how to warm up prospective clients to your business and your abilities.
  5. Stock Analysis

    Google's 5 Key Financial Ratios (GOOG)

    Learn how calculating financial ratios such as the debt-to-equity ratio and price-to-earnings ratio helps investors evaluate Google's core business.
  6. Economics

    The Oscars and Golden Globes: Worth Their Weight In Gold!

    The Oscars and Golden Globes set off a wave of spending that creates new flows of funds in the economy and has major financial impact.
  7. Entrepreneurship

    Multilevel Marketing Isn't Always A Scam, But It Often Is

    Nerium and Amway are popular direct sales companies that recruit new buyers and sellers to make a profit. Sadly, many direct sales firms are scams.
  8. Term

    How Market Segments Work

    A market segment is a group of people who share similar qualities.
  9. Investing

    5 Up and Coming Social Media Startups

    Although the days of Facebook's dominance aren't close to being over, here are some new creative platforms gaining traction on the worldwide web.
  10. Investing

    Barbie's Body Wasn't the Problem (opinion)

    Barbie's body type wasn't what killed sales, argues Angela Travillian. Other factors were at play.
RELATED FAQS
  1. How can a business determine its most effective value proposition?

    To determine its most effective value proposition, a company must make a purposeful effort to craft a unique value proposition ... Read Full Answer >>
  2. What is a boiler room operation?

    In the context of investing, the term "boiler room operation" refers to the use of high pressure sales tactics to sell stocks ... Read Full Answer >>
  3. Is a financial advisor allowed to pay a referral fee?

    A financial advisor is allowed to pay a referral fee to a third party for soliciting clients. However, the Securities and ... Read Full Answer >>
  4. Does consumer protection cover my debts?

    The most impactful consumer protection laws and regulations in the United States are overseen by the Federal Trade Commission ... Read Full Answer >>
  5. How does a long tail become profitable?

    A long tail becomes profitable because the costs to produce, market and distribute a product or service in a niche are low, ... Read Full Answer >>
  6. How do companies with a large product portfolio use BCG Analysis?

    BCG analysis is used to evaluate an organization's product portfolio in sales planning and marketing. It is specifically ... Read Full Answer >>
Hot Definitions
  1. Short Selling

    Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is ...
  2. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  3. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  4. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  5. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  6. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center